After years of smooth sailing through calm market conditions, bond markets in East Asia are navigating through stormier weather. ADB data released this week shows that weaker growth in the US and the PRC has weighed down overall regional growth.

Debt has ballooned in developing Asia following the 2008-2009 global financial crisis, supported by plentiful global liquidity. With the US Federal Reserve about to raise interest rates, data from the Asian Development Outlook 2015 gives a clearer picture about the possibility of a credit slowdown in the region.